ABA Warns Dealers About How to Combat Fraud, Cyber Security Breaches
The American Bankers Association cautioned that cybercriminals are increasingly targeting small businesses such as dealerships, to transfer funds from accounts and steal private information, a fraud referred to as "corporate account takeover."
The association contends that criminals can use spoofed emails, malicious software and online social networks to obtain login credentials to businesses' accounts, which they then use to make illicit transactions.
"Small businesses are a growing target for account takeover," said ABA chief executive officer Frank Keating.
"Yet, a strong partnership with your financial institution will give you the tools needed to shield yourself from this attack," Keating continued.
Keating went on to stress that combating account takeover is a shared responsibility between dealerships and financial institutions. He acknowledged that bankers can explain the safeguards small businesses need and the numerous programs available that help ensure fund transfers, payroll requests and withdrawals are legitimate and accurate.
Meanwhile, he added, store employees should be trained about safe Internet use and the warning signs of this fraud since they can be the first line of defense.
"We're far more effective at combating account takeover when we combine resources than going at it alone. Talk with your banker about the tools your business and bank can use together to minimize this threat," Keating said.
As part of National Cyber Security Awareness Month, ABA offered dealerships and other small businesses tips to help prevent account takeover:
—Protect your online environment. It is important to protect a dealership's cyber environment just the physical location.
"Do not use unprotected internet connections," officials recommended. "Encrypt sensitive data and keep updated anti-virus and anti-spyware protection on your computers. Change passwords from the default to something complex, including at point-of-sale terminals.
—Partner with a bank for payment authentication
"Talk to your banker about services that offer call backs, device authentication, multi-person approval processes, batch limits and other tools that help protect you from unauthorized transactions," officials suggested.
—Pay attention to suspicious activity and react quickly
"Put your employees on alert," ABA reiterated. "Look out for strange network activity, do not open suspicious emails and never share account information. If you suspect a problem, disconnect the compromised computer from your network and contact your banker. Keep records of what happened.
—Understand responsibilities and liabilities
"The account agreement with your financial institution will detail what commercially reasonable security measures are required in your business," the association explained. "It is critical that you understand and implement the security safeguards in the agreement. If you don't, you could be liable for losses resulting from a takeover. Talk to your banker if you have any questions about your responsibilities."
To learn more, ABA's Small Business Guide to Corporate Account Takeover can be found here.
More details about National Cyber Security Awareness Month can be located here.